VASCO Creates Worldwide Divisions to Leverage Anticipated Explosive Growth In e-Security Market / Company retains two leading IR firms to manage global investor

OAKBROOK TERRACE, Ill. and BRUSSELS, Belgium (PROTEXT) - VASCOData Security International, Inc. (OTC Bulletin Board: VDSI), aleading multinational provider of Internet and enterprise-widesecurity solutions, today announced that it is structuring thecompany to prepare for anticipated rapid growth in the need forits security solutions in the Year 2000 and beyond. With a largeand blue-chip international customer base as well as globaldistribution channels, VASCO expects to fully leverage theexpected high demand for secure Single Sign-On, PKI, websecurity, strong user authentication, access control, and useradministration security solutions after Y2K. "Our customers and prospects are telling us that the firstmonth of the year 2000 will be a 'green light' for building andenhancing their security infrastructures," noted Mario Houthooft,VASCO's President and CEO. "Every company that takes its businessto the Internet will need security, and we're taking the stepsnecessary to have VASCO poised and ready for significant growth.We expect our speed-to-security and lower total cost of ownershipadvantages to create real differentiating value for ourcustomers." To ensure that it is prepared for accelerating demand, VASCOhas formalized its organization along two worldwide divisionallines, known as IdentiSoft(TM) and IntelliSoft(TM). Each divisionhas global responsibilities for the development, sales, andsupport of its product lines, utilizing an expanding set ofglobal corporate resources and personnel for activities such asbusiness development, marketing, and administration. The twodivisions are also working closely together on joint sales andpartnership opportunities. In addition, the company is optimizingthe synergies created by its worldwide R&D centers -- withengineers who hold deep and broad knowledge of securitydevelopment, platforms, and integration -- by coordinatingdivisional product development through a unifying technology andproduct vision. VASCO's new IdentiSoft division holds global responsibilitiesfor the development, sales, and support of the company's leadingDigipass(TM) strong user authentication technology. With morethan 130 banks and hundreds of corporations around the world ascustomers, IdentiSoft has become the security resource of choicefor financial organizations seeking to protect access toinformation and transactions. Jan Valcke, formerly Sales Managerfor VASCO Europe, has been named General Manager of theIdentiSoft division. VASCO's new IntelliSoft division, formed through theacquisition of IntelliSoft Corporation earlier this year, ismoving to aggressively expand its resources, adding severalexperienced sales, marketing, and customer support personnel tothe already established core of highly experienced softwareengineers. The division has global responsibilities for thedevelopment, sales, and support of VASCO's SnareWorks(TM) andVACMAN(R) product lines. Jonathan Chinitz, General Manager of theIntelliSoft division, is overseeing the global expansion anddevelopment of IntelliSoft and its line of Single Sign-On, PKI,web security, access control, and user administration securitysolutions. As Division General Managers, Jan Valcke and Jonathan Chinitzreport directly to Mario Houthooft. In a further step to help the company build shareholder valueand prepare for rapid growth, VASCO has retained the services oftwo experienced investor relations firms. The London-based firmof Lommaert & Blondeel is leading investor relations activitiesin Europe, while investor relations in the Americas is being ledby KCSA Public Relations Worldwide, based in New York City. Inaddition to their proven investor relations expertise, a criticalfactor in the selection of these firms was their extensiveexperience working together on joint worldwide accounts such asLernout & Hauspie (Nasdaq: LHSP; Easdaq: LHSP), a key VASCOpartner and investor. "These steps create a VASCO that is more than prepared toleverage the dynamic and explosive security opportunities comingin the next millennium," said Mario Houthooft. "Our customers,prospects, partners, shareholders, and employees can expect thenew VASCO to deliver even greater value to them, personally andprofessionally." About VASCO Data Security VASCO helps organizations rapidly and effectively secure theire-business and e-commerce applications and services. Thecompany's family of Digipass(TM), VACMAN(R), and SnareWorks(TM)products offers end-to-end security through true Single Sign-On,PKI, web security, strong user authentication, access control,user administration and encryption solutions that also sharplyreduce the time and effort required to deploy and manage them.With hundreds of financial institutions, blue-chip corporations,and government agencies as customers in more than 50 countries,VASCO Data Security is a global leader in security solutions thatsupport the Internet economy. More information is available atwww.vasco.com and www.isoft.com. Forward Looking Statements Statements made in this news release that relate to futureplans, events or performances are forward-looking statements. Anystatement containing words such as "believes," "anticipates,""plans," or "expects" is forward-looking, and these statementsinvolve risks and uncertainties and are based on currentexpectations. Consequently, actual results could differmaterially from the expectations expressed in these forward-looking statements. For more information contact, Americas, Media, Mike Lange ofVASCO Data Security, 630-932-8844 or mbl@vasco.com, or InvestorRelations, Jeffrey Corbin of KCSA Public Relations Worldwide,212-682-6300, or jcorbin@kcsa.com, or Europe-Asia, Media, ArianeBosmans of VASCO Data Security, +32 2 456.98.10, orarb@vasco.com, or Investor Relations, Annemieke Blondeel ofLommaert & Blondeel Consultants, +44 1322.520.180, ora.blondeel@dial.pipex.com ots Original Text Service: VASCO DataSecurity Internet: http://www.newsaktuell.de Contact: Americas,Media, Mike Lange of VASCO Data Security, 630-932-8844, ormbl@vasco.com, or Investor Relations, Jeffrey Corbin of KCSAPublic Relations Worldwide, 212-682-6300, or jcorbin@kcsa.com, orEurope-Asia, Media, Ariane Bosmans of VASCO Data Security, +32 2456-98-10, or arb@vasco.com, or Investor Relations, AnnemiekeBlondeel of Lommaert & Blondeel Consultants, +44 1322-520-180, ora.blondeel@dial.pipex.com Web site: http://www.isoft.com Website: http://www.vasco.com

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